Triple Net Property Pick of the Week | O’Reilly Auto Parts

O’Reilly Auto Parts | NNN Lease | 1626 Freedom Blvd, Watsonville, CA

DESCRIPTION

Single-Tenant Freestanding O’Reilly Auto Parts:
•Recent 10-year lease extension with 14 years remaining on the current lease term

•Hub Store format that serves as a retail store and mini distribution center
*21-year operation history at the site
*One of 331 strategic hub locations in the 5,021 location chain
*Hub locations carry 48,000 SKUs, more than double compared to the average store of 23,000 SKUs
•Corporate guaranteed lease with investment grade tenant

•NNN Lease; tenant is responsible for all expenses except for building structure; minimal landlord responsibilities

•Fixed increases every 5 years including each of the three 5-year option periods

•O’Reilly Automotive , Inc. is a leading auto parts retailer with 5,021 stores across 47 states

•O’Reilly opened 190 new stores in 2017 with plans to add 200 new stores in 2018

•High Volume Location Resulting in Low Rent-to-Sales Ratio: Based on average store sales for O’Reilly Auto Parts, Watsonville features an extremely low occupancy cost and provides a long-term secure investment (contact broker for further details)